Market Information Friday 30 October 2020

Market Information Friday 30 October 2020

The European Central Bank (ECB) decided on Thursday to maintain the current interest rate policy. This is in line with analysts’ expectations. In addition to the interest rate policy, the ECB also left the buy-back program (PEPP) unchanged. In addition, the ECB stated that the growth and inflation forecasts of December 2020 must first be awaited before new measures are taken.

Consumer prices in Germany increased by 0.1 percent in October 2020 compared to September 2020. Compared to October 2019, prices decreased with 0.2 percent. This follows from provisional figures published by the German statistical office Destatis on Thursday. Economists expected that the price level would remain stable on a monthly basis and decrease by 0.3 percent on an annual basis.

Consumer confidence in the eurozone decreased in October 2020. The index that reflects confidence decreased to 15.5 negative, from 13.9 negative in September 2020. In August 2020, the index was 14.7 negative. The economic sentiment index remained unchanged at 90.9.

The 6M Euribor is unchanged at -0.51% compared to previous business day. The 10Y Swap increased with 1 basis point to -0.27% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Thursday 29 October 2020

Market Information Thursday 29 October 2020

The Japanese central bank has lowered its forecast for the economy. The bank’s policymakers expect the economy to decrease by 5.5% this year, compared to 4.7% previously. The decrease is caused by declining exports, which are much lower due to the corona virus. The Bank of Japan expects an economic recovery for next year. Gross domestic product (GDP) is expected to increase by 3.6% in 2021.

Banks in the eurozone restrict funding for companies and families to borrow money. This is evident from the Bank Lending Survey of the European Central Bank, a quarterly report based on a survey conducted at the beginning of this month among nearly 150 banks. The Survey shows that banks are bracing for defaults due to the economic impact of the corona pandemic. The institutions already tightened their credit conditions in the third quarter and indicated that they will continue this policy in the fourth quarter. Banks ask companies for considerably more collateral for a loan. The effects of these tightened credit conditions can already be seen. The ECB reported on Tuesday that monthly lending to businesses was negative for the first time since September 2019 last month.

Import prices in Germany increased by 0.3% in September 2020 compared to a month earlier. On an annual basis, the import prices decreased by 4.3% in September.

The 6M Euribor decreased with 1 basis point to -0.51% compared to previous business day. The 10Y Swap is unchanged at -0.28% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Wednesday 28 October 2020

Market Information Wednesday 28 October 2020

Expectations for exports of the manufacturing sector in Germany decreased to a reading of 6.6 in October according to research institute Ifo. In September optimism among German exporters was 10.3. The decline is caused by the second pandemic corona wave that has an impact on economic developments and international trade worldwide. In April, during the first wave, the export indicator showed a reading of minus 49.2.

Durable goods orders in the United States were up 1.5 % in September from a month earlier, as reported by the US Department of Commerce on the basis of preliminary figures. In August, those orders increased by an adjusted 0.4 %. Economists had anticipated an increase of 0.5 %.

US consumer confidence declined slightly in October from a month earlier. The indicator that reflects confidence shows a reading of 100.9 in October according to market researcher Conference Board’s announcement on Tuesday. In September, the index showed a revised level of 101.3. Economists had expected an increase in confidence to a reading of 102.

The 6M Euribor is unchanged at -0.50% compared to previous business day. The 10Y Swap decreased with 3 basis points to -0.28% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Tuesday 27 October 2020

Market Information Tuesday 27 October 2020

The recovery of the German economy from the corona crisis has been weakened by the increasing number of corona infections in the country and the renewed social restrictions imposed to counter the pandemic. The Bundesbank states this in its monthly report. According to the central bank, Germany’s economy clearly recovered in the third quarter from the heavy impact in the second quarter. At that time, Europe’s largest economy was still contracting at a record rate of 9.7% on a quarterly basis. For the fourth quarter, however, the Bundesbank is now expecting a weaker recovery than previously thought.

German business owners have lost some confidence in the economy this month. This was announced by the Ifo research institute. Ifo’s confidence index for October was 92.7, compared to a score of 93.4 in September. It is the first decrease in six months. In April, during the first wave of the corona crisis, the confidence index decreased to the lowest level ever measured.

The increasing number of corona infections in the world and the increasingly restrictive corona measures caused a decline on Europe’s stock exchanges on Monday. For example, the AEX index in Amsterdam ended 1.5% lower at 545.95 points. The stock market indexes in London and Paris fell by 1.2% and 1.9% respectively. The German DAX fell the most, by 3.7%.

The 6M Euribor is unchanged at -0.50% compared to previous business day. The 10Y Swap is unchanged at -0.25% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Monday 26 October 2020

Market Information Monday 26 October 2020

Credit rating agency Fitch confirms the credit rating of the Netherlands. The agency adheres to its AAA rating of the creditworthiness of the Netherlands with a stable outlook. Fitch points out that the Netherlands has a flexible, value-adding, and open economy. Fitch also calls the Dutch economy effective. Due to the corona crisis, government debt will rise above the level that justifies an AAA rating. However, the credit rating agency points out that the Netherlands has a strong track record of sound budget management. Fitch expects that the Netherlands will be able to stabilize or even reduce its debt ratio in the medium term once the pandemic has passed its peak.

World trade grew by 2.5 percent in August compared to a month earlier, reports the Dutch Central Planning Bureau (CPB). That is lower than a month earlier, when growth was still 5 percent. World trade is now almost recovered to the level before the corona crisis. The difference is still 3 to 4 percent.

Activity in the American and European industry grew at a higher rate in October than a month earlier. Markit’s industry purchasing managers index in the US for this month was 53.3 compared to 53.2 in September. For the European industry, Markit’s purchasing managers index stood at 54.4 compared to 53.7 in September.

The 6M Euribor is unchanged at -0.50% compared to previous business day. The 10Y Swap decreased with 1 basis point to -0.25% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Friday 23 October 2020

Market Information Friday 23 October 2020

The Leading Economic Indicators (LEI) index for the US economy increased by 0.7 percent in September 2020 to 107.2. In August 2020, the index increased by 1.4 percent. The LEI index is a business cycle indicator that shows the development of the economy in the coming six months.

Consumer confidence in the eurozone decreased in October 2020 compared to September 2020. This follows from preliminary figures published by the European Commission on Thursday. The index representing confidence decreased to negative 15.5 in October 2020 from negative 13.9 in September 2020. In August 2020, the index level was negative 14.7.

The prices of existing owner-occupied homes in the Netherlands increased by 8.6 percent in September 2020 compared to September 2019. This follows from figures published by Statistics Netherlands and the Land Registry on Friday. In August 2020, prices were 8.2 percent higher compared to August 2019.

The 6M Euribor is unchanged at -0.50% compared to previous business day. The 10Y Swap increased with 2 basis points to -0.24% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Thursday 22 October 2020

Market Information Thursday 22 October 2020

Britain’s budget deficit increased to GBP 208.5 billion (€ 228 billion) in the first half of the fiscal year that began in April. Th deficit is mainly caused by the high expenditure to support the economy during the corona crisis. The government expects the budget deficit to reach GBP 372 billion for the entire fiscal year. This equates to approximately 19.0% of the UK’s gross domestic product (GDP). Britain’s public debt has now increased to over GBP 2 trillion.

As of today European Brexit negotiator Michel Barnier is welcome in London to resume discussions on a free trade agreement. The British government decided last Friday to end the talks with Brussels as the EU was not willing to compromise. Now that negotiations are resumed, a trade deal will need to be arranged as per mid-November. Without the deal, quotas and import duties for mutual trade will be imposed from January 1, 2021.

Consumer confidence in The Netherlands turned slightly more pessimistic in October 2020. Consumer confidence fell to a score of minus 30, compared to a score of minus 28 in September 2020, as reported by Statistics Netherlands (CBS), based on their monthly measurement.

The 6M Euribor is unchanged at -0.50% compared to previous business day. The 10Y Swap increased with 1 basis point to -0.26% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Wednesday 21 October 2020

Market Information Wednesday 21 October 2020

The Dutch economy performs better than other European countries, reports Statistics Netherlands (CBS). After an economic contraction in the first quarter of 2020, the Dutch economy contracted by 8.5 percent in the second quarter compared to the previous quarter. This was the strongest contraction ever recorded. The German economy decreased by 9.7 percent in the second quarter, the Belgian by 12.1 percent and the French by 13.8 percent. Within the EU, the Spanish economy decreased the most at 17.8 percent. Unemployment in the Netherlands is also low by European standards. Only a few EU Member States, among which Germany, had a lower unemployment rate in August than the 4.6 percent measured in the Netherlands.

Home construction in the United States increased slightly again in September to more than 1.4 million homes. According to the US government, the number of homes under construction increased 1.9 % in September from a 6.7 % decrease in the month of August. Economists had anticipated an increase of 3.5 %.

The first issuance of bonds for corona support by the European Union has been well received by capital markets on Tuesday. Investors subscribed for more than 233 billion euros in two bond series with a joint size of 17 billion euros, resulting in an order book that was almost fourteen times oversubscribed. The first series of bonds, with maturity of ten years, had the highest demand for an Eurobond ever.

The 6M Euribor is unchanged at -0.50% compared to previous business day. The 10Y Swap increased with 3 basis points to -0.27% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Tuesday 20 October 2020

Market Information Tuesday 20 October 2020

Producer prices in Germany increased by 0.4% in September 2020 compared to August, according to the German Federal Statistical Office. Economists expected a decrease of 0.1%. In August, prices remained the same. On an annual basis, German producer prices fell by 1% in September.

In August 2020, the production in the construction sector rose by 2.6% in the euro area compared to July. This was reported by the European statistics office Eurostat on the basis of a first estimate. In July, the production in the construction sector in the euro area increased by 0.3%. Compared to August 2019, production decreased by 0.9%.

Industrial production in the United States unexpectedly decreased by 0.6% in September 2020 compared to August, as was reported by the Federal Reserve. Economists expected an increase of 0.5%. In August, production increased by 0.4%.

The 6M Euribor is unchanged at -0.50% compared to previous business day. The 10Y Swap is unchanged at -0.30% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Monday 19 October 2020

Market Information Monday 19 October 2020

The measures that many European countries are taking to control the second wave of the coronavirus cause a lot of additional economic uncertainty for companies and families. President Christine Lagarde of the European Central Bank (ECB) emphasized her concerns about the heavy toll that virus measures are taking on the services sector. According to Lagarde, this major impact could delay the recovery of the eurozone economy and increase inequality. “The recovery remains very uncertain, uneven and incomplete,” said Lagarde. “It is clear that both government support and monetary policy must be used for as long as necessary to keep the economy from falling off a cliff.”

The American credit rating agency Moody’s downgrades the creditworthiness of the United Kingdom due to the approaching Brexit and the corona crisis. In the Moody’s scale, the credit rating of the UK drops from Aa2 to Aa3. The country’s economic strength has declined since an August 2017 assessment, according to Moody’s.

Despite the corona pandemic, the Chinese economy grew strongly in the third quarter of the year. Gross domestic product rose by 4.9 percent in that period compared to a year ago, according to figures released in Beijing on Monday. GDP growth is higher than the 3.2 percent recorded in the second quarter. In the first quarter, the country’s economy declined by 6.8 percent.

The 6M Euribor decreased with 1 basis point to -0.50% compared to previous business day. The 10Y Swap decreased with 1 basis point to -0.30% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Friday 16 October 2020

Market Information Friday 16 October 2020

US import prices increased by 0.3 percent in September 2020 compared to August 2020, according to the US Department of Labor on Thursday. In August 2020, prices increased with 1.0 percent compared to July 2020. In addition, export prices also increased in September 2020, by 0.6 percent compared to August 2020.

Figures from the US Department of Labor show that 898,000 Americans filed for social assistance benefits in the week ending October 10, 2020. This is an increase compared to the week before, when 845,000 applications were submitted. Economists had expected 830,000 new unemployed.

French consumer prices increased by 0.5 percent in September 2020 compared to August 2020. This follows from final figures from the French statistical office on Thursday. The decrease is in line with the first estimate. On an annual basis, prices remained stable in September 2020 compared to September 2020, after the initial estimate showed an increase in consumer prices of 0.1 percent.

The 6M Euribor decreased with 1 basis point to -0.49% compared to previous business day. The 10Y Swap decreased with 2 basis points to -0.29% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Thursday 15 October 2020

Market Information Thursday 15 October 2020

Unemployment in the Netherlands decreased (unexpectedly) in September 2020, compared to a month earlier. Based on figures from Statistics Netherlands (CBS), 4.4% of the labor force was unemployed. This equates to 413,000 job seekers. In August this was 4.6%, equal to 426,000.

Economists of Dutch banks discussed the consequences for the economy of the new corona measures in place since Wednesday. The consensus is that the short-term outlook will deteriorate, but the economy may recover faster after that. Before the new measures were announced, Rabobank economists assumed an economic contraction of 5.2%. According to them, little will change due to the restrictions imposed by the cabinet this week. The International Monetary Fund (IMF) also states that short, strict lockdowns to eradicate the virus are the least damaging to the economy.

Eurozone industry production increased slightly in August, as reported by the statistical office Eurostat. The seasonally adjusted production increased 0.7% in August compared to July. On an annual basis, industrial production decreased in August, by 7.2%.

The 6M Euribor increased with 1 basis point to -0.48% compared to previous business day. The 10Y Swap decreased with 2 basis points to -0.27% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Wednesday 14 October 2020

Market Information Wednesday 14 October 2020

German investors’ confidence in the future decreased in October, according to the ZEW index released yesterday. Economists expected the index to decrease to a reading of 72 but the index decreased to 56.1 from 77.4 a month earlier. The index that measures confidence in the current situation was still negative at 59.5 from minus 66.2 in September. According to the research institute, expectations for the Eurozone economy decreased in October to a reading of 52.3 compared to 73.9 in September.

The Dutch economy will probably contract less this year than previously expected, according to the International Monetary Fund (IMF). For 2020, the IMF now expects a decline of 5.4% for the Netherlands, compared to an earlier forecasted decline of 7.7%. The IMF is also revising its expectations for the world economy. The global economy is expected to contract with 4.4% this year from a previously predicted 4.9% decline. The adjustments are mainly due to the fact that economic data in recent months turned out to be slightly better than initially assumed. The forecasts for the recovery have also been adjusted. In 2021, the Dutch economy will probably increase with 4%, compared to a previously predicted 5%. For the global economy the IMF expects an increase of 5.2% compared to the earlier assumed 5.4%. IMF chief economist Gita Gopinath points out that the forecasts are still very uncertain, due to the new wave of corona infections.

Inflation in the United States slightly increased again in September to 1.4% year-on-year from 1.3% in August according to the US government. The increase is in line with the expectations of economists. Core inflation, excluding fluctuating energy and food prices, was 1.7% as it was in August. On a monthly basis, US consumer prices increased by 0.2% compared to 0.4% in August.

The 6M Euribor is unchanged at -0.49% compared to previous business day. The 10Y Swap decreased with 2 basis points to -0.25% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Tuesday 13 oktober 2020

Market Information Tuesday 13 oktober 2020

With a slow economic recovery from the corona pandemic, the full recovery of global energy demand is not likely to be expected until 2025. This is what the International Energy Agency (IEA) predicts. According to the IEA, global energy demand will decrease by 5% this year. With a corona vaccine, the demand for energy could increase again in 2021 and recover as early as 2023, but if the economic recovery slows down even further, that timeline will be pushed back two years.

The UK economy grew by 2.1% in August compared to the previous month. Economists predicted an average GDP increase of 4.6% for August compared to July. The recovery is therefore disappointing, after the historic impact of the corona pandemic this spring. The UK National Statistical Office points out that the UK Gross Domestic Product (GDP) is still 9.2% below its February 2020 level.

Inflation in Germany reached minus 0.2% year-on-year in September. In August, inflation levelled at 0.0%. This was reported by the German Federal Statistical Office on the basis of a final figure, which is in line with an earlier estimate.

The 6M Euribor is unchanged at -0.49% compared to previous business day. The 10Y Swap decreased with 1 basis point to -0.23% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Monday 12 October 2020

Market Information Monday 12 October 2020

The outlook for the inflation level remains well below the target of the European Central Bank (ECB). The ECB will consider whether further stimulus of the European economy is necessary. Philip Lane, the ECB’s chief economist, announces that the inflation outlook is “unsatisfactory”. Inflation in the euro area has been negative since August. The ECB expects inflation to increase to 1.3% in 2022, but that is still below its target of inflation close to 2%.

Dutch exports of goods were 2.3 percent lower in August than in the same month a year earlier. Especially the export of petroleum products, transport equipment and metal products declined. Also, fewer machines and equipment were exported according to the Central Bureau of Statistics (CBS). The volume of imports was 0.8 percent lower than a year ago.

The number of bankruptcies in the Netherlands increased slightly in September. This is reported by the Dutch Central Bureau for Statistics (CBS). However, the number of declared bankruptcies remains low. 8 more companies were declared bankrupt in September compared to August. Specifically, it concerned bankruptcies of 211 companies and institutions, excluding sole proprietorships.

The 6M Euribor is unchanged at -0.49% compared to previous business day. The 10Y Swap is unchanged at -0.22% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Friday 9 October 2020

Market Information Friday 9 October 2020

Figures published by the US Department of Labor show that 840,000 Americans filed for social assistance benefits in the week ending October 3, 2020. This is a slight decrease compared to the week before, when 849,000 applications were submitted. Economists had expected 825,000 new unemployed.

Production in the Dutch industry decreased by 4.0 percent in August 2020 compared to August 2019. Compared to July 2020, the production increased by 0.7 percent in August 2020. This follows from figures published by Statistics Netherlands on Friday. In June 2020 and July 2020 an annual decrease in industrial production was reported of 9.7 percent and 5.2 percent respectively.

Figures from Markit and Caixin show that the Chinese services sector grew at a higher rate in September 2020 than in August 2020. The purchasing managers index increased from 54.0 in August 2020 to 54.8 in September 2020. This is the fifth month in a row in which the index indicates growth.

The 6M Euribor decreased with 1 basis point to -0.49% compared to previous business day. The 10Y Swap decreased with 1 basis point to -0.22% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Thursday 8 October 2020

Market Information Thursday 8 October 2020

Prices of consumer goods and services increased by 1.1% in September 2020 compared to September 2019, based on figures of Statistics Netherlands (CBS). In August 2020 inflation was still 0.7% on an annual basis, the lowest level since November 2016. The price development of clothing in particular has an upward effect on inflation. In addition to the consumer price index (CPI), Statistics Netherlands also calculates the European harmonized consumer price index (HICP). Consumer goods and services prices in the Netherlands increased by 1.0% in September 2020, according to the HICP.

German manufacturing output decreased slightly against expectations in August 2020, based on figures from the German Federal Statistical Office. This brings the industry’s earlier recovery to a halt. Production decreased by 0.2% on a monthly basis in August, economists had expected an increase of 1.5%.

British negotiators are ready to end talks with the European Union about a new trade deal if no agreement is reached next week. This was confirmed by a spokesman for British Prime Minister Boris Johnson. It has been agreed that head lines of an agreement should be presented before October 15. Negotiators from the EU state that they will not make concessions under pressure from the British.

The 6M Euribor increased with 1 basis point to -0.48% compared to previous business day. The 10Y Swap increased with 1 basis point to -0.21% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Wednesday 7 October 2020

Market Information Wednesday 7 October 2020

If countries declare lockdowns again for a second corona wave, Dutch exports will be hit hard, according to Netherlands Bureau for Economic Policy Analysis (CPB) and Statistics Netherlands (CBS). According to the CPB, the consequences for the transport and industry sectors are underexposed. Based on World Trade Organization (WTO) scenarios, the CPB looked at the consequences of global lockdowns of three, six and twelve months. A period of three months is similar to the measures taken between March and May. In that scenario, the added value of transport, the electrical engineering industry and machine building decreases by 7% to 13%. With a lockdown of six months, the effects will double, -13% to -24%.

The Chairman of the Federal Reserve, Jerome Powell, warned on Tuesday that the recovery of the US economy will be in trouble if additional government support is not provided soon. According to Powell, the risk of doing too much is less than the risk of doing too little. The chairman of the Federal Reserve thus looks more in agreement with the Democrats than the Republicans in U.S. Congress. The two parties have not yet been able to make a decision on a new bailout package. Powell emphasized in his speech that monetary and fiscal policies must together ensure a strong and swift recovery.

Global trade in goods is decreasing significantly this year, but not as much as initially thought. This is because trade picked up strongly again in June and July, according to the World Trade Organization (WTO). The WTO now assumes that the volume of goods traded worldwide this year will be 9.2% lower than in 2019. The organization previously predicted the contraction due to the corona crisis at 12.9% in the best case. However, the recovery in world trade in 2021 is likely to be slower than the organization predicted in April. For next year, the WTO is expecting an increase in world trade of 7.2% against a previously predicted increase of 21.3%.

The 6M Euribor decreased with 2 basis points to -0.49% compared to previous business day. The 10Y Swap is unchanged at -0.22% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Tuesday 6 October 2020

Market Information Tuesday 6 October 2020

Activities in the services sector in the eurozone, including hospitality and aviation, decreased in September compared to August. This was announced by market researcher Markit on the basis of final figures. Markit’s purchasing managers index, which measures activity in the services sector, resulted in a final figure for September of 48 compared to 50.5 in August. A score of 50 or more indicates growth, including contraction.

Retail sales in the eurozone increased in August compared to July. According to European statistics office Eurostat, sales increased by 4.4% in August 2020. In July, there was still a decrease of 1.8%.

Factory orders in Germany increased more than expected in August. This was according to data from the Federal Statistical Office. On a monthly basis, orders were 4.5% higher. Economists assumed an increase of 2.8%. A month earlier, the number of factory orders increased by an adjusted 3.3%.

The 6M Euribor increased with 1 basis point to -0.47% compared to previous business day. The 10Y Swap increased with 2 basis points to -0.22% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Monday 5 October 2020

Market Information Monday 5 October 2020

The Brexit negotiators must work “intensively to bridge the gap” in order to reach an agreement on the future (trade) relationship between the EU and the United Kingdom. In a statement following a video consultation between the British Prime Minister Boris Johnson and President Ursula von der Leyen of the European Commission both underlined “the importance of finding an agreement, if possible, as a strong foundation for a strategic relationship”.

Credit agency Standard & Poor’s (S&P) has confirmed its rating of Germany at AAA, the highest level. The outlook for the biggest economy of the European Union is stable. France’s rating remains at AA, also with a stable outlook.

The employment level in the United States grew at a lower rate in September than in August. The US Department of Labor announced that last month, 661,000 jobs were added in the US excluding the agricultural sector. Unemployment in the US was 7.9 percent last month compared to 8.4 percent a month earlier.

The 6M Euribor is unchanged at -0.48% compared to previous business day. The 10Y Swap decreased with 1 basis point to -0.24% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Friday 2 October 2020

Market Information Friday 2 October 2020

Unemployment in the eurozone increased by 0.1 percentage point to 8.1% in August 2020, compared to July 2020. Based on new figures published by statistics agency Eurostat on Thursday. In August 2019, the unemployment rate in the eurozone was 7.5%.

In addition, Eurostat reported on Thursday that producer prices in the eurozone increased by 0.1% in August 2020 compared to July 2020. The increase is in line with what economists had expected in advance. In July 2020, producer prices had increased by 0.7% compared to June 2020. On an annual basis, prices decreased by 2.5% in August 2020 compared to August 2019.

Figures from the Japanese government show that the consumer confidence index in Japan increased to a level of 32.7 in September 2020, from 29.3 in August 2020. All four sub-indices increased, while the confidence in employment increased the most.

The 6M Euribor decreased with 1 basis point to -0.48% compared to previous business day. The 10Y Swap is unchanged at -0.23% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.

Market Information Thursday 1 October 2020

Market Information Thursday 1 October 2020

The selling prices of the Dutch industry were on average 4.3% lower in August 2020 than in August 2019, according to figures published by Statistics Netherlands (CBS). The prices in the industry are strongly related to the price development of crude oil. Crude oil prices were approximately 26.8% lower in August 2020 than in August 2019. Compared to July 2020, the output prices of the industry decreased by 0.1% in August 2020.

The United States economy contracted less than expected in the second quarter of 2020, as reported by the US government based on their third estimate. The downturn in the second quarter is estimated at 31.4%. This is the largest fall in the gross domestic product (GDP) of the world’s largest economy since measurements began.

Dutch household spending rose significantly in the third quarter of 2020 compared to the second quarter. Despite this increase, consumption is still much lower than before the corona crisis. As unemployment is expected to increase this autumn, ING economists expect that the recovery in consumption in the fourth quarter will come under pressure. ING based this on pin payments, business confidence and retailers’ sales figures.

The 6M Euribor is unchanged at -0.47% compared to previous business day. The 10Y Swap increased with 2 basis points to -0.23% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.